Source: Sharecast
The University of Michigan’s consumer sentiment index came in at 55.0, down from 55.1 the month before and 70.5 in October 2024. Still, it was above consensus expectations for a reading of 54.0.
The index for current economic conditions rose to 61.0 in October from 60.4 a month earlier but was down on October 2024’s reading of 64.9.
Finally, the index of consumer expectations printed at 51.2, versus 51.7 in September and 74.1 in October last year.
Surveys of consumers director Joanne Hsu said: "Improvements this month in current personal finances and year-ahead business conditions were offset by declines in expectations for future personal finances as well as current buying conditions for durables. Overall, consumers perceive very few changes in the outlook for the economy from last month.
"Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds. At this time, consumers do not expect meaningful improvement in these factors. Meanwhile, interviews reveal little evidence that the ongoing federal government shutdown has moved consumers’ views of the economy thus far."
ING said: "Consumers remain anxious about the potential for big tariff-induced price hikes, but the increasingly dominant worry is the state of the jobs market.
"Job security perceptions look particularly weak, and in an economy where the consumer accounts for 70% of all economic activity, the Fed will remain under pressure to offer more support."
